The Life360 Inc (ASX: 360) share price is up 6% after the company announced its 2024 fourth quarter update.
Life360 describes itself as a family connection and safety company. It offers a mobile app and tile tracking device to empower members to “stay connected to the people, pets and things they care about most. It has services like location sharing, safe driver reports and crash detection with emergency dispatch.
Life360 2024 Q4 highlights
Here are some of the highlights from the result for the three months to December 2024, year on year:
- Fourth quarter revenue grew 33% to $115.5 million
- Subscription revenue increased 32% to $78.8 million
- Annualised monthly revenue (SMR) increased 34% to $367.6 million
- Positive adjusted EBITDA of $21.2 million, up $12.3 million
- EBITDA of $8.4 million, up $10.4 million
- Operating cashflow up 38% to $12.3 million
The company reported that its 2024 fourth quarter monthly active users (MAU) net additions were 2.8 million, while total MAU increased 30% year on year to 79.6 million.
Life360 also said that its global paying circle net additions were 69,000 – up 27% year on year. Total paying circles grew 25% year on year to 2.3 million, supported by improved conversion and retention in the US.
Average revenue per paying circle (ARPPC) increased 6% year on year mainly due to impacts from a US shift in “product mix towards higher priced products” as well as from legacy price increases and dual tier membership launches. In the coming years, the Life360 share price could be increasingly influenced by revenue per customer.
The company said its FY24 fourth quarter operating expenses, excluding commissions, increased 22% year on year (compared to revenue growth).
Management commentary
The Life360 CEO and co-founder Chris Hulls said:
2024 was a transformative year for Life360. We successfully launched our advertising business, unlocking new growth opportunities, introduced a cutting-edge lineup of Tile devices, executed an award-winning brand campaign, forged a key strategic partnership with Hubble, and celebrated a significant milestone by completing our U.S. IPO to become publicly traded on Nasdaq.
As we enter 2025, we are laser-focused on achieving our longer term strategic goals: reaching 150 million MAU, surpassing $1 billion in annual revenue, and exceeding a 35% Adjusted EBITDA margin. By keeping families safe, connected to the people, pets, and things they love, and helping make everyday life better, we are uniquely positioned to tap into vast global market potential and drive sustained growth for years to come.
Outlook for the Life360 share price
The business gave investors some guidance about what to expect in the 2025 financial year.
Life360 said that it’s expecting FY25 revenue of between $450 million to $80 million and positive adjusted EBITDA of between $65 million to $75 million.
The business is clearly doing well and it continues to scale strongly. But, it’s up more than 180% in the last year alone, so it’s certainly not cheap. There are ASX growth shares that I’d buy first.
